Canada unveiled new sanctions against Iran yesterday notably targeting the energy industry, to press it to resume negotiations on its controversial nuclear programme.

The sanctions announced by Foreign Minister Lawrence Cannon are similar to those imposed by the United States and the European Union, and take aim at Iran’s energy and banking sectors, as well as chemical, biological and nuclear activities.

Like the EU and the United States, Canada will bar all new investment in Iran’s energy industry, particularly crude oil refining and liquefied natural gas.

Although Iran is the world’s fourth largest oil producer, it imports nearly 40 per cent of its fuel needs because it lacks the refining capacity required to meet domestic demand.

The sanctions are in addition to a fourth set of sanctions imposed by the United Nations June 9.

Iran responded to the UN action by suspending talks about its nuclear programme with six world powers – the United States, Russia, China, Germany, France and Britain.

The United States and its allies believe Iran is using a uranium enrichment programme to produce fissile material for nuclear weapons, a charge that Tehran denies.

Iran’s actions “are bringing it closer and closer to possessing nuclear weapons which represents a threat”, said Mr Cannon.